ABSTRACT
DOs in the US (generally named exactions) are based on indirect rationales – generally through the internalization of negative externalities – as it can be expected in a country with a long tradition of strong private property protections. The impetus for the rise and expansion of exactions in the US was due to a combination of factors that came at the forefront in the late 1960s/early 1970s. They include changes in law, public finance, performance standards, demand and cost, and a conservative anti-tax political climate. DOs vary widely. In the US localities, within the more or less constraining prescribed parameters of individual states, establish locally binding regulations and obligations. Typical N-NDOs include Development Impact Fees, Inclusionary Housing and Commercial Linkage Fees. The utilization of both N-NDOs and NDOs is growing. NDOs are growing in localities experiencing growth pains. In some high-growth localities, land value recapture is entering the public discourse, although in “disguised” forms such as “Public Benefit Zoning,” and a few cities have used its rationale to obtain additional amenities.
